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tv   Closing Bell  CNBC  September 30, 2013 3:00pm-4:01pm EDT

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no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready real business. captain obvious answer. day, 81% of our poll responders say american companies should shut down between christmas and new year's. >> thanks for watching "street signs." >> bye. >> "closing bell" is next. welcome, everyone. breaking news. it's now nine hours before the government will shut down unless congress can make a deal.
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welcome to "the closing bell." >> i'm kelly evans in today for maria bartiromo. the shutdown showdown center stage down here at the new york stock exchange. we've been equities all day down triple digits. we're down about 114 points right now on the dow jones industrial average. same thing, about half a percent on the s&p, a level of 1682. the nasdaq weakening as well, although holding up a little better. the focus as well will be on the last hour of trade. this is the day where washington, wall street and main street all intersect. john harwood is in washington with the latest on this fight. we're now less than nine hours to go until the deadline. recap where things stand for us right now. >> reporter: where things stand, kelly, is that the senate has now defeated on a partisan vote, the democratic majority has turned down the house proposal to condition the extension of government funding through november on a delay or defunding of obama care and a repeal of the medical devices tax, which
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is part of it. house members are now meeting on the house side of the capitol to try to figure out their next move. there is discussion within their caucus of throwing back to the senate another version of the continuing resolution that would extend government funding, delay the individual mandate, which is a central core element of obama care and also attach an amendment that would eliminate what they call subsidies to members of congress and staff for their health insurance. they think some republicans think this is a real pressure point for democrats. harry reid was just asked about that at his press conference and he said that the senate would not pass that. when you look at all of these things, you think the odds have got to be very high that we have a shutdown tonight. but there's one person who's not persuaded of that yet, that's president obama. here's the president speaking just a few minutes ago. >> i am not at all resigned. if you set aside the short-term
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politics and you look at the long term here, what it simply requires is everybody to act responsibly and do what's right for the american people. >> the one real hope for averting a shutdown before midnight tonight is if in fact the senate kills that new house republican position, as harry reid indicated, speaker boehner could make the decision to put a clean extension of government funding with no obama care provisions on the floor. it would pass if he did that but it would be risky for him because it would make some conservatives unhappy and threaten his speaker shship. >> john, how about this idea or this report that mitch mcconnell is floating something to certain folks up on the hill of a one-week extension. does that have any merit, does it have any hope? >> reporter: i don't think it has any hope.
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harry reid has rejected it. he said the extension of government funding that i put on the floor is also short term but through november 15th and a one-week delay wouldn't mean anything. democrats are saying if we're not negotiating now, why would we negotiate over the next several weeks. also republican conservatives in the house have also rejected mcconnell's proposal saying that's too weak for us, we need something stronger. we want to continue to go after obama care so it doesn't look at this stage that mitch mcconnell's solution will be the way out. >> john, i'm sure it's not the last we'll see of you this afternoon. thank you so much. is the market reading this right as we're down triple digits or is this a buying opportunity. joining us we've got david sourby, michael, mike thompson, hello, and our own rick santelli. that you all for joining us. >> absolutely. >> i want to kick it off here,
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they have weakened a little bit but i wonder are people overlooking the fact that the big fight might be around the debt ceiling or do investors not think even the debt ceiling fight will be that damaging? >> i don't think it will be that damaging. i remember distinctly in 1995 when the government had a shutdown in november-december of that year and yet in the fourth quarter and first quarter of 1996, stock returns in those two quarters combined were up 11%. bond returns were positive 2% to 3%. if you're taking the kids to yellowstone national posh, it's an inconvenience. if you're a stock investor, it's going to come back to interest rates, corporate profits and inflation. that's what's going to drive the market, not the government. >> mike thompson sitting next to me. do you think we're going to look back at this whole episode and if we didn't buy on the dip kick ourselves? >> i think there's a chance of that, yeah. i think that the market is
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getting desensitized to these manufactured problems coming out of washington. to be honest with you, i think unless this goes on for a long, long time, i don't think it really impacts consumer psychology. therefore, won't hurt retail sales and the underpinnings of an economy that continues to move forward. >> michael, is all of this just whistling past the graveyard? >> i'm not sure what that means. >> in other words, are people looking past this -- michael, just to be clear. look, are people actually in danger of looking past what could potentially be an extremely serious event either tonight or later on in the month if we breach the debt ceiling? >> i don't think so. i think that most investors are desensitized to the ridiculousness that we're seeing play out in washington. i don't think there's going to be a long-term impact on the equity markets. i think scott is right, this is a buy on a dip opportunity not just in the united states but also in europe because europe
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has been selling off based on this as well. i also think, and i'm sure rick has some insight on this, that it might actually be positive for treasuries. there might be some sort of sentiment that perhaps this will negatively impact gdp. you may see treasury yields fall a bit as investors are more concerned about what the psychological impact of a shutdown might be. >> rick, chime in here. what's your view on all that's taking place and the impact it could all have on the markets, whether it's here in new york or up in chicago or wherever you happen to be trading? >> you know, i think the fixed income markets, let's just look. right now whether you're looking at twos, fives, tens or 30s, each one is one basis point than it closed on friday. and remember, this is a somewhat important rebalancing day in terms of the last day of the quarter so the treasury market seems pretty focused. if you looked this morning when we had the better than expected chicago, the bond market reacted
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as one would expect, some sellings and treasury pushing up yields. many of the dynamics in place for treasuries and the dollar index seem to be more tied to the first friday of every month's employment report and fed meetings. no matter how this turns out in d.c., no matter whose graveyard you're more concerned with whistling past, whether it's the long-term fiscal situation, whether it's one-sixth of the economy in terms of the affordable care act, there's many points of view on this. i think the treasury has it right. these short-term issues really are just little pieces of a bigger issue that will continue to gnaw at us and affect for the big novembers like 2014 and 2016. >> let's say there's a 13th hour deal, the government shuts down a short period of time. what happens tomorrow if it's only a short period of time? >> i don't suspect we'll see huge volatility no matter what the outcome is at this point, at this pointing. the debt ceiling issues may be
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bigger fish to fry. as one e-mailer sent me today, by shutting down the government, we will be pushing forward the amount of days before we touch the debt ceiling limit. >> rick, that's a point a couple of people have tried to make but i don't think a couple billion makes too much difference on that front. i want to circle back, david, to you and remind people there's a lot of different things going on today. we've had to digest european politics over the weekend, it is the last day. quarter. is this really all about what's happening in washington? >> today it is. unquestionably the issue with the debt ceiling is what's driving the market today but i think the market is smart enough to realize that 30 years of history says that 90%, 90% of stock returns have come over the last 30 to 40 years when congress is out of session. that's a pretty big proof statement to me that says that this will eventually be a nonevent. you're right, it's what's going
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on with valuations, which are positive, interest rates are positive, fed policy is positive. the economy is not growing fast enough, but it is grudgingly improving. those are all backdrops that i want to be net positive and overweighted in stocks. >> david, thanks so much. >> my pleasure. >> also thanks to michael, mike and rick santelli today. 50 minutes to go before we close it up today. dow jones down. final trading day of this quarter. the backdrop going on in d.c. and whether we'll actually have a shutdown to this government or not. >> a lot of people waking up, realizing that they're non-essential and staying home. up next, we go live to the home state of one of the possible shutdown's most polarizing figures, senator ted cruz. we want to know what people in texas have to say about the impending shutdown and how one of their two senators is handling all of it. coca-cola is no longer considered the most valuable brand in the world. stay tuned and we'll tell you which company knocked it out of
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welcome back. senator ted cruz becoming the face of the republicans' position in the budget battle with his 21-hour pseudofilibuster. so how are his actions playing in his home state of texas? scott is there in dallas with that angle of the d.c. drama. scottie? >> reporter: hey, scott. as you know well, texas is an area with a lot of different cross currents. this is a state that has a great deal of federal money coming here, a lot of federal installations, but as you said it's also the home state of senator ted cruz, who in many ways has become the public face of this battle over obama care, government funding and so on. and so a lot of people are saying more power to him. they like what he's doing. there's no empirical data on that yet, but people are soon going to have the depth of their convictions tested. because if you look at payments to federal contractors, right there at the top of the list, $41.5 billion in 2011 to lockheed martin, and a lot of lockheed martin's work is in
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west ft. worth, texas, not far from here where they're building the f-35 fighter and there are a lot of businesses who rely on those lockheed martin employees, including cal's top shop, which is a small metal fabrication shop. they do some work for lockheed martin but also auto body work for lockheed martin employees. the owner of that business says that if this shutdown -- if there is a shutdown and it goes on for a while, he's definitely concerned. >> i'm kind of fretful of the coming days and how long the government will be shut down. i know it will run by itself for a week or two, but will it be longer than that? if it is, then yeah, we could be affected real bad. >> reporter: but, cal dapper says he supports what's going on now on the republican side. he supports senator ted cruz because one thing that he does not like is obama care. ted cruz's most recent approval rating was figured back in
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march, so before all of this came about. that was about 39%, not bad for a newly elected senator. we'll see how things change as this all plays out. scott, kelly. >> scott, wonder if green eggs and ham will factor into the approval rating. i guess we'll have to wait and see. with us now two of the people who can avert a shutdown. >> joining us from capitol hill, representative sandra levin, a democrat from michigan, and representative tim huelskamp, representative from kansas. you consider yourself a member of the tea party wing, no? >> i certainly do. i've been a long-time conservative activist, long before i came to congress. >> in that case do you feel as though it is you and your colleagues who are driving the conversation here? do you feel as though the weight of the nation is upon you to come to some agreement with the rest of the house to get the government up and running tomorrow? >> well, there's a strong republican position in the house
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and almost as strong a republican position in the senate. it just reflects what we're hearing from the american people. it's overwhelming, they don't like obama care. we're just doing what they are asking us to do to push back, keep the government open but stop obama care. >> i think with all due respect, congressman, they dislike the thought of a shutdown more so than they do disliking obama care. i think that's been clear from any of the polling. i think your leader in the house of representatives, would probably agree with that notion. >> well, we have said for almost three to four years of how bad obama care is. i'm not sure what the latest polls are showing, but the one that matters to most members of congress are what their constituents are saying. they're very clear. people are losing their jobs, they are not getting hired. they're going from full time to part-time. plus it's going to blow a hole in the deficit. we have to look at all of that when we're looking at the crisis we have in washington. >> representative levin, you
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have been through a shutdown before back in the '90s. how would you compare that experience with what is looming tonight? >> i think we're at a very dangerous position. you know, it's very clear, if the speaker puts the senate bill, a clean government funding bill up for a vote in the house, it will pass. it will pass. and that's why the republicans in the house so far have been afraid to put it up. so i say to the speaker and say to my colleague here, let's have a vote, bring it up before the house of representatives, the clean bill that came over from the senate, and let's see what happens. that's the only way to avoid a shutdown. and if the speaker doesn't bring the bill up, a shutdown is going to result. i was looking at the figures, for example, as to day care. two million kids are going to be in jeopardy of losing their day care if we shut down. we've already seen some impact on the stock market. you've reported it. >> right.
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>> it could become worse. we should not have a shutdown. let us vote on a bill that passed the senate. it will pass. you can vote against it but let us have a vote so i and some rips an democrats can vote for it. >> congressman huelscamp, are you prepared to shut down the government if you can't get either a delay in the implementation of obama care, the medical device tax or anything of the like? will you vote to shut down the government if that's what it takes to win your position, your point of view? >> here's our position. we'll fund everything but obama care. and harry reid with the vote he orchestrated today, they refused to allow amendments, they refused to allow an appropriations bill to the floor. it's been four year since harry reid let an appropriations bill come to the floor for a full debate. it's very clear he wants a shutdown. we're willing to send him everything except obama care, which is unpopular.
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senator reid and mr. obama, it's not ready for primetime. >> so if a delay of obama care is not part of this, you're telling me and our viewers and all of the constituents out there who are watching this that you in fact are willing to vote to shut down the government? >> i believe we'll have another opportunity for harry reid to keep the government open. but when president obama refuses to even negotiate, he won't come off the golf course and join the debate, these are the things that might happen. the house is a very clear position. let the senate debate and have a full accounting of the budget and the appropriations. we don't have to shut the government down. >> you've been asked a straight question and the answer is? answer it straight. if you don't get your way, if obama care isn't defunded, you're going to vote no, i'm going to vote yes. and my request is, and this is what the american people by a clear majority want, bring the
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senate bill up for a vote in the house today. give us a chance to vote yes or no. you can vote no. >> the american people do object want obama care. >> but have a vote so you can vote no and i can vote yes with some republicans and with most democrats. >> representative levin. >> that's what democracy is all about. >> representative, even if you vote no, you're in the minority on this. >> i'm going to vote yes for the senate bill. i'm not in the minority. no, no. i will vote yes on the senate bill and so it will bass. >> are you willing to shut the government down for your position? >> my position is let's have a vote on the senate bill. >> your position is to shut the government down unless you get obama care. >> it's the opposite. obama care is going into effect tomorrow. >> not for big businesses, not for labor unions. >> congressman levin, that's where i wanted my next question
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to go. it does go into effect tomorrow, the exchanges are expected to open. what about the argument that maybe we should delay the kbli takes because the exchanges are not ready to open, they're fraught with problems, whether it's glitches trying to figure out exactly what the rates are going to be, that's an issue. how about that side of the argument? >> i'll tell you what's happening in michigan and in other states. it will open tomorrow. it's ready to be opened. there are some problems, there are usually with large new problems, but this is ready to be implemented and the people of this country want us not to shut down the government over this argument. mr. huelscamp will vote to shut down the government if he doesn't get his way on defunding obama care. i say let's proceed. give us a vote on the floor of the house today, mr. speaker. give us a vote. if you bring it out, it will pass. an that's why there are many republicans essentially in the
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conference who are holding it over the head of the -- >> i just came from a conference and that was not the debate in the republican conference. that's what we heard. the american people i don't think really care if washington slows down tomorrow. most federal employees, 60% will still be on the job. what most people see is the federal government will still be working. i admit the panda cam will not be in action. lois lernor will still get her pension. >> don't change the subject. it's nod pandas. >> maybe you can stop looking past one another and speak directly to each other. maybe that's part of the problem. >> i'd like to do that. and what i want to do on the floor of the house this afternoon is to bring up the bill so you and i can debate it and we'll have a yes or no vote. >> we will have a vote later today. the congressman will have his opportunity to vote to shut down the government unless he gets obama care. but until the president and harry reid actually say we're willing to sit down and negotiate, when you hear the
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president of the united states accusing the political opponents of being suicide bombers, you know they're not serious. when the president is out playing golf instead of coming to the table, that is ridiculous. it's time to negotiate and sit down like grownups. >> we're going to leave it there. >> i'm sorry we still have ten hours to do it. >> i know we have time to get it done, scott, but it scedoesn't m all that promising. >> congressman levin, that's indisputable, the markets are watching closely. gentlemen, thanks to you both. we have a dow that's down nearly 130 points here with 35 minutes to go before we close it up. this shutdown is looming. >> that's right. the defense industry in particular is bracing for the impact of a government shutdown. coming up we'll hear from one leader with how this could impact his companies. apple dethroned coke as the most valuable brand but which is the more valuable stock for your portfolio? we'll debate that when "the closing bell" continues.
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welcome back. coca-cola's reign as the world's most valuable brand has finally come to an end. dominic chu tells us who has dethroned coke. >> coca-cola is out. soda is giving way to iphones and it pads. that's what brand marketing experts at interbrand said in their latest study. the most valuable brand in the world is apple. google is number two and coca-cola slipped to the number three spot. we wanted to know who the
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biggest movers in brand value. so bad news first. the three biggest decliners in terms of brand value. number three, nintendo, down 14% in value. number two is a financial services giant, morgan stanley, down 21% in brand value from last year. and the biggest decline in brand value between last year and this year belongs to nokia, which just recently sold its hand set business to microsoft. its brand value fell 65%. so what about the good news, which brands saw the biggest gains? number three, prada, up 30% since last year. number two is web giant google up 34%. and the number one spot goes to social networking giant facebook, whose brand value has increased by 43% just since last year. so those six stocks are where the momentum is. as for apple and coca-cola, give interbrand's $98 billion estimate of apple's brand value, it would be about 23% of apple's total market value in today's
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terms. meanwhile, with coca-cola's $79 billion brand value, it would be nearly half of coca-cola's total value as a company in terms of market cap. so kelly, scott, a little food and drink, of course, for thought. back over for you. >> thank you very much for that. if apple is a more valuable brand as of now, fine. the question is which company could be the better investment. that is if you bought it right now. >> joining us is peter sorentino, gary bradshaw. gentlemen, thanks to you both. peter, what do you think? >> well, right now i'd have to be an apple buyer. the stock is trading at less than one times it's pd to growth rate. they have enormous cash flow. and people line up around the block before dawn to buy their product. that's the kind of company i'd like to own. growth has been the step child this year while value took it to them. i think it's time for that to reverse. apple is down a third from its
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high, so to me it looks like a pretty decent entry point in here. >> gary, why do you think coca-cola is the better bet? >> well, it's hard to argue at the moment that coke is going to outperform apple in the short term. but at the hodges equity income fund, coca-cola is still a core holding. and below $38, we like the stock. it has a 2.95% dividend that it's grown for 51 straight years. they just raised it 10%. and coke's earnings around the globe continue to grow. they'll earn 215 this year, 235 next week. we think you can put a 20 multiple on 2014 earnings and get coke back to $45, $46 a share. they just split their stock two for one earlier in the year. they continue to gain market share. and we look at coke as a core holding and slow growth for both
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income and total returns, so more of a total return vehicle than a real fast grower. but looking at it, we do like coke. >> all right, guys. thanks so much. peter and gary, thanks for being here. >> thank you for having us. coming up we'll have much more on apple. ceo tim cook meeting with carl icahn today. but is icahn's involvement with this company good or bad for the stock? you won't believe what he has to say on that very topic. and the dow, the s&p 500 we're keeping an eye on all the markets. we're looking at 139 points in this selloff. we have weakened a little bit as we continue to follow news out of washington this afternoon. i'm not sure people took much encouragement from the back and forth we just heard. >> as the countdown to the shutdown grows closer, the stock market losses are getting a little bigger. up next we'll hear from somebody who says a shutdown could end up being a great buying opportunity for investors. he'll explain why history is on his side when we come back. a nfident retirement. those dreams, there's just no way we're going to let them die.
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welcome back. the drama continues to build on capitol hill as that march towards the government shutdown is ongoing. right there behind that closed door, gop members are in conference. they have been there for about an hour. no doubt plotting strategy among their members. this comes after the senate
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approved that clean cr to keep the government operating, sends it back now to the house so it's anybody's guess as to what is being discussed and what may happen, kelly, from here throughout the rest of the evening. >> all we can say is we started out with the dow down 90 points and now we're down 150 points, so certain that no one down here expects much to come out of that conference. >> although we don't know. there's no staffers in the room. this is purely members who are discussing their strategy. do they advance -- what bill do they eventually advance in the house. that's where all the drama continues to build, right there behind that closed door that we're seeing in the nation's capital. >> we should mention as well it's not just the attention of the u.s. here, scott, it's the world's attention. pretty much every note i've seen from everyone in london, and singapore and hong kong is much attuned to this process as we are here as well. >> so the countdown goes on. also the countdown to the end of the quarter goes on. bob, we're less than a half hour
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away until the quarter ends on wall street. >> and still up for the quarter. three to one declining to advancing stocks today. look at the dow industrials. we're near the lows for the day but we've been down 100 to 150 points just about the entire day. put up the dow jones industrial average. volume is still very much on the light side. i know there's still not a lot of panic down here. i want to put up the vicks. that's what's going on. if you look at some of the sectors today, most of the bigger sectors are down. here's a big question, guys. what happens to ipos if the government shuts down? this is a big week for ipos. burlington stores is pricing tomorrow, remax is pricing tomorrow, empire realty, they're pricing, potbelly pricing
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thursday. the s.e.c. has to sign off on the price in terms of any ipo before they begin trading so what actually happens. i asked the s.e.c. and this is the response i got. if the s.e.c. had to shut down, we would not be able to approve ipos. but per our website, we are remaining open because we have carryover funds. it's not clear, guys, how much carryover funds they have or for how long they might be able to stay open. again, another issue is that twitter ipo. not clear whether they'd get that out this week or get the s-1 as well. back to you guys. >> bob, thank you much, sir. the market seems to be betting the shutdown might be something bigger, might lead to something bigger. perhaps it will bleed into the debt ceiling fight. >> joining us now jenna godfrey and jim mcdonald from new edge. both are cnbc contributors. nice to see you both. >> thank you very much. >> jemma, what's the view over in london about how this is
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playing out and what the market reaction may be and how we should maneuver it? >> well, policy missteps are the biggest risk to markets at the moment and that's because of where we are economically, where the government is financially and also where markets are. so great is still fraji ii i-- fragile. secondly if you look where we are financially, the debt ceiling is looming. this uncertainty, and this is the main crux of why people are worried, the uncertainty will restrain businesses' investment and consumer spending. and finally, markets have already rallied quite far quite fast and the under the radar risk, which really hasn't got a lot of -- >> sorry to jump in just for one second if you could hold that thought. we've got some breaking news out of washington. in fact at this moment we want to get straight out to john harwood. >> reporter: i've just communicated with a house republican who's been in that meeting where republicans have been considering their next step
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on a continuing resolution and asked whether or not there's any chance that john boehner will put a clean cr on the floor of the house tonight to avert a shutdown. this has always been the possibility. one-word answer i got from this member is no. if that is correct, that means that we are headed for a shutdown at midnight tonight. again, we've got some hours to go, more than eight hours to go until then. this is a fast-moving situation but as of now it appears there is no chance john boehner will put a clean cr on the floor of the house tonight. >> john harwood, maybe that's why the markets -- i guess in the last 20 minutes have started to take a little bit more of a turn downward. dow is down 150 so the markets are watching every move closely, john, to see how all of this is eventually going to play out. >> reporter: yes, and remember if we have a shutdown, that doesn't mean it will be a long shutdown. we don't know. and we've got the debt crisis coming up just two weeks after this one. but it does look more and more likely. i have been one of the last and most optimistic people that they
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would work it out since republican leaders have been wanting to avoid this. it does not appear at this stage as least as best as i can tell that they can do that. >> that's significant news, john. thank you very much as we keep an eye on the market here again at session lows. larry, you raised this point earlier, that even as we look toward the government shutdown, perhaps this makes the debt ceiling on the 17th more doable. at least that's the view that some have taken here. you're saying it's going to be the opposite. not only are we going to get a shutdown, but this will make the debt ceiling issue more of a problem? >> well, no, i think it's -- i think this creates more pressure to get something done on the debt ceiling. if you think over the last coming into september, the uncertainties, the yellin/summer thing is gone, the fed meeting gone, german elections gone, so we're coming up out of the five big uncertaintieuncertainties, o the last two. i think if we shut down tonight, which we probably will, that
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puts tremendous pressure over the next six days to get something done. if the market sells off into that and then rallies into the eventual deal, it will probably come around the 15th. >> larry, are you telling our viewers that they should be buying this selloff, which does appear to be intensifying? it certainly seems as if we're getting a shutdown barring a last-minute deal. >> well, if you remember the market bottomed november 16th and then we rallied into a tede toward the year end. so there's no question the market rally will start before the deal. the only time we're going to get the deal really, the big deal, and that is on the debt ceiling, that will be between the 15th and the 17th. so i think the market bottoms here sometime in the next two or three days. i think we may have 2% more down on the bottom so i think we're down about 3% from the highs. and i think once you get down around 5%, i think you start -- you start to buy some fear here. >> jemma, what do you think
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makes a bigger move once this thing is all said and done? is there a bigger selloff in treasuries or a bigger buy in equities? >> the biggest risk is in equities as opposed to treasuries. what people are concerned about is a potential downgrade in u.s. debt if there are troubles in negotiating the debt ceiling. the reason there was a downgrade last time was, first of all, because of the impasse and secondly the lack of a plan. if they pretend and extend and if they do get over this next hurdle, will there be a clear plan in place. the problem is with a lack of alternatives out there, treasuries are unlikely to be hit as much. it's the equity markets that will feel the bigger force. it's very hard to catch a falling knife. the way that we're investing is by looking for companies that have purchasing power and, therefore, more protected from any feelings that you may get in terms of consumer sent meant and can protect their margins. >> gemma, great point.
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john harwood, thank you so much for the reporting as we keep an eye on markets here, scott. >> one thing is clear, investors have seen this movie before. they don't like this one any better than the last one. dow is down 150 with 15 minutes to go before we close it up. >> could wall street force a d.c. deal? coming up if today's selloff gets worse, will lawmakers get nervous and come to their cen s senses. we'll ask d.c. insiders if they're paying attention to what's going on at wall street. protesters taking aim at jpmorgan's jamie dimon. >> what should appear, he should go to jail, but he's not, we all know that. >> there they are. and believe it or not, they even attempted to make a citizen's arrest of mr. dimon. coming up, one of the rally's organizers explains what they want and why they're going to such extremes. bny mellon combines investment management & investment servicing,
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giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon. speaker of the house john boehner has just stepped to the podium. >> we believe everyone should be treated fairly so we're going to move here this the next several hours to take the senate bill, add to it a one-year delay of the individual mandate on the
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american people and get rid of the exemption for members of congress. it's a matter of fairness for all americans. >> the house is going to take a position today reflecting one very fundamental principle that our country stands for. no special treatment for anyone. as the speaker indicated, this administration, this president has provided special treatment and carve-outs and exceptions under obama care for big business, for special interests, and yes, it has provided a carve-out for members of congress. our position is very clear. no special treatment for anyone. we all live under the laws equally applied. >> very short and simple today. we'll pass a bill that funds government. so the question will rest with harry reid, just two questions. >> before eric cantor was speaker of the house of
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representativ representatives, john boehner, asking that they will move ahead asking for a one-year delay of obama care and remove exemptions of members of congress saying no one deserves special treatment. >> digging in is what republicans are really doing because now the real showdown is going to begin. you can hear the rhetoric from both of those gentlemen there, not only the speaker but eric cantor as well. it certainly seems as if a government shutdown is well on its track some eight hours away and change. >> and it supports the reporting that we just heard from john harwood who said he did not hear there was going to be a vote on the clean cr continuing resolution bill tonight. it does not look like that's happening. markets already priced in this news. we're bouncing a little off the lows. let's look at what the nasdaq has been doing as well. it's far and away the best performer of the major averages this quarter. sheila breaks it down for us. hey, sheila. >> today even the nasdaq has not been immune from some of the pressure the overall market is
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feeling but overall for the third quarter it is a feather in the cap for the tech heavy index. in fact the nasdaq is up 11% in the third quarter so handily outperforming the s&p and dow jones industrial average. looking at some of the big winners, number one and number two, names we talk about all the time, facebook and tesla really leading the way this quarter. facebook up over 100%. both stocks in fact today even on a down day hitting new record highs. yahoo! is another big winner, up 30%, really on the back of this impending alibaba ipo. biotech, again one of the big leaders leading the nasdaq to gains. in fact again two names hitting new highs today as well. i even have a retail name for you and that is sears. sears is up 40% for the third quarter here at the nasdaq. yes, there's a lot of technical issues with the stock. you can talk about its thin float, its high short sbrks but baker street capital did come out talking about the real estate value in sears.
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on the downside, on the losing end of this you have monster beverage. expedia, which is interesting, because a lot of the online travel names have actually been performing quite well. expedia has been left behind. biggest losers in the nasdaq is barbie. mattel is down 7% for the quarter, some weak earnings and concerns kids aren't playing with dolls and toys anymore. there is perhaps a turn-around for mattel coming up this holiday season. mattel has the most toys on the hottest toys for christmas list, so maybe that's going to help things out. i don't know about you, kelly, but i always loved my barbies so maybe kids will come back with them. >> i was never actually the biggest fan but i'm weird like that. sheila, thanks very much as we head into the important holiday season. back to important news. just about ten minutes left to go before the closing bell. the dow is down 140 points. the s.e.c. reiterating it can stay open for a couple of weeks in the case of a shutdown tonight. >> fears of that shutdown certainly spooking investors, or
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is it just an excuse to take some profits? chad morganlander says today's selling is just the start of a correcting stage. that bears call when we come back on "the bell." s just that't you know "hidden things." ok, why's that? well uhhh... hey daddy, what's your job? daddy's a uhh florist. are you really a florist? dad, why are there shovels in the trunk? there's no shovels in my trunk. i see shovels... you don't see no shovels. just am. well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.
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hard to believe we're in the final stretch, the final ten minutes of trading for the month and the quarter. joining us now, michael crofton and chad morganlander. chad, to you first, buying opportunity. is this a selloff? >> i think we're in a short-term trading correction here, maybe 3% to 5% on the downside and then we'll be looking for seams of opportunity. i think ultimately we have to focus our attention on earnings as well as what the federal reserve is going to do and when they're going to do it. >> so what you're telling me is that this move in the market we've seen over the last several days is no different from any of those another mini corrections that we've seen in the last several months? >> right. you're getting a mini correction. i think people are a little jittery about the 17th going into october. but nonetheless, how is it going to affect the broader economy, and also what are the negotiations when they do pan ou, how is that going to be a drag on the u.s. economy. we expect perhaps a half a percentage point drag on the u.s. economy. >> michael, you seem to be in
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the camp it's not insubstantial who actually seem to want a shutdown and think it will be a good thing. >> i think short term is probably is a good thing. government has gotten way too big and somebody has to put their foot down at some point. laying a lot of blame. >> what are you, 100% in cash? >> no, no, i'm fully invested and i'm going to use this as a buying opportunity. the three things in the market's favor, we have historically low interest rates, we have balance sheets that are in the best shape they have ever been in almost the history of corporate america of the and three, europe, china, the middle east, maybe china this morning had a little hiccup. >> do you want a shutdown because you can buy stocks more cheaply? >> i think it's the right thing to do and you have to think about the skpconstituents forci these guys hands. the republicans are looking at a midterm election. they have got tea parties lined up to fight all the incumbents. >> i don't get it, though. you're the first guy on wall street that i've heard say that a government shutdown is the right thing to do and it's good.
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>> it's only going to be short term. the market will go through this like nothing. you probably have seen what the market will do if there's a shutdown for a day or two. basically, the president has lost the leadership role here. he is supposed to be sitting down with congress and the senate to negotiate a settlement. >> you're making a political speech here. >> not at all. >> you're supposed to be telling me what we should do in the market environment. >> you should be buying into this market. any weakness you should buy. you should buy technology, industrials, financials and energy. i think the market is poised to go a lot higher for the reasons i mentioned. low interest rates, strong balance sheets and the macro problems easing. >> chad, i will say this, yes, we're down 150 but it's not worse. is that because, a, people thinks this makes an agreement on the debt ceiling more likely or, b, they don't think the impact of breaching that would be that big of a deal? >> i think they're going to come in with an agreement the next couple of days. we all know that. they'll agree to some type of
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settlement. the real ultimate and important thing to focus your attention on is away from this and more towards earnings, the economy as well as the federal reserve. and that ultimately is what's going to drive the markets either higher or lower. our expectations for 2014, gdp grows at 2% for s&p earnings, $110. so we're a little more cautious with valuation and growth. nonetheless, you can find seams of opportunity to buy at this point. >> chad, thanks. michael thanks as well. we've got a lot of news to get to on the other side of this quick break. we'll have the countdown. >> join us. make a deal with me, kid, and you can have the car and everything that goes along with it. [ thunder crashes, tires squeal ] ♪ ♪ so, what do you say? thanks... but i think i got this. ♪ [ male announcer ] the all-new cla.
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from td ameritrade. breaking news. let's go down to capitol hill and eamon. >> house republicans have emerged from their meeting up here on capitol hill. they say they're going to send over a bill to the senate side which includes two obama care related changes. they say they're going to dare the senate to not pass that bill and engage in a government shutdown. if they do that, the senate will be responsible for that government shut down the republicans say. they also say they think they might be able to get that done as soon as tonight. but one of the members of the congress told me tonight, he said take a nap. this is going to be a very late night, guys. >> no doubt about that. thanks so much. let's continue our conversation up here and what's happening in the market. we do have about 1.5 minutes to
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go and clearly, kelly, wall street does not like what's taking place in washington, d.c., as we march towards this shutdown. >> the selling pressure is coming off a little bit, that's echoed in what we see here. we were down about 150 points. just as we were getting the news from our john harwood that there likely wouldn't be a bill to avert the shutdown, scott, now a little bit of a rebound. again, though, jitters are the consistent theme of the day. >> let's not forget this is the final trading day of what has been a really good quarter on wall street. don't forget the nasdaq is up 11% this quarter, the s&p 500 is up 5%. the best performer in the quarter is netflix helping out the nasdaq for certain. the worst, no big surprise given how it's traded lately especially, and that's jcp, j.c. penney. >> as we head into september all of the event on the horizon, from the german elections to what was happening in washington, we've not only navigated the month but the quarter through all of that. >> we'll continue to follow the story of all of these late-breaking developments in
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washington, d.c., as it relates to the market. what ultimately will happen in d.c. throughout the wee hours of the morning, if the government does shut down at government, some eight hours from now. [ bell ringing ] all right. and with that, welcome to "the closing bell." i'm kelly evans in for maria bartiromo. >> and i'm scott wapner. we are eight hours away from what's looking like a government shutdown. here's how we're finishing a pretty bad day on the street. the dow closing off its lows but still a triple-digit loss, a nearly 1% decline for the dow, down 125. the nasdaq wrapping up a great quarter in which it rose 11%, giving just a smidge of that back today in a ten-point decline. there's the s&p up 5% in the quarter, down about tw


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